Question

Date Transaction Number

of Units Per Unit Total
Jan. 1 Inventory 7,500 $75.00 $562,500
10 Purchase 22,500 85.00 1,912,500
28 Sale 11,250 150.00 1,687,500
30 Sale 3,750 150.00 562,500
Feb. 5 Sale 1,500 150.00 225,000
10 Purchase 54,000 87.50 4,725,000
16 Sale 27,000 160.00 4,320,000
28 Sale 25,500 160.00 4,080,000
Mar. 5 Purchase 45,000 89.50 4,027,500
14 Sale 30,000 160.00 4,800,000
25 Purchase 7,500 90.00 675,000
30 Sale 26,250 160.00 4,200,000
1. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system.

Answer 1

Total Sales $19875,000
Cost Of Goods Sold: $ 11902,000
Gross Profit $ 7973,000
Ending Inventory 11,250 units
Step-by-step explanation:
Midnight Supplies
DATA
Date Transaction Number of Units Per Unit Total
Jan. 1 Inventory 7,500 $ 75.00 $ 562,500
10 Purchase 22,500 85.00 1,912,500
28 Sale 11,250 150.00 1,687,500
30 Sale 3,750 150.00 562,500
Feb. 5 Sale 1,500 150.00 225,000
10 Purchase 54,000 87.50 4,725,000
16 Sale 27,000 160.00 4,320,000
28 Sale 25,500 160.00 4,080,000
Mar. 5 Purchase 45,000 89.50 4,027,500
14 Sale 3 0,000 160.00 4,800,000
25 Purchase 7,500 90.00 675,000
30 Sale 26,250 160.00 4,200,000
Total Sales $19875,000
Date Transaction Number of Units Per Unit Total
Jan.
28 Sale 11,250 150.00 1,687,500
30 Sale 3,750 150.00 562,500
Feb. 5 Sale 1,500 150.00 225,000
16 Sale 27,000 160.00 4,320,000
28 Sale 25,500 160.00 4,080,000
Mar 14 Sale 3 0,000 160.00 4,800,000
30 Sale 26,250 160.00 4,200,000
Total Sales 125250 19875,000
Cost Of Goods Sold:$ 11902,000
Date Transaction Number of Units Per Unit Total
Jan. 1 Inventory 7,500 $ 75.00 $ 562,500
10 Purchase 22,500 85.00 1,912,500
Feb 10 Purchase 54,000 87.50 4,725,000
Mar. 5 Purchase 45,000 89.50 4,027,500
25 Purchase 7,500 90.00 675,000
Total 136,500 $ 11902,000
Gross Profit = Sales Less COGS
= $19875,000- $ 11902,000
= $ 7973,000
2. Ending Inventory = Units Purchased Less Units Sold
= 136,500-125250 = 11,250 units